Smart Giving: Use an IRA required minimum distribution to support causes you believe in.
November 11, 2019
Heart and Mind at Work:
Donors minimize taxable income and support causes they are passionate about when they direct an IRA distribution to a fund at The Community Foundation.
The IRS describes this strategy as a Qualified Charitable Distribution (QCD). You can make a QCD in lieu of a required minimum distribution from a Traditional IRA to an eligible charitable organization, like The Community Foundation. Made in this way, your IRA withdrawal will not incur taxes.
The Process is Simple
Choose your gift amount and how you would like your gift to be used.
QCD gifts may be made to support The Community Foundation or one of its programs, like Youth in Philanthropy, the Women and Girls Fund or The Community Fund for emerging and urgent needs.
You can also make a gift to any existing Community Foundation scholarship, field of interest, designated or agency fund. (Distributions cannot be to a donor advised fund.)
Or ask us about establishing a new charitable fund on your behalf!
Ask your plan administrator to direct your IRA distribution to The Community Foundation.
You may choose a recurring or one-time gift.
Do You Qualify?
Donors must be 70½ years old on the date of the distribution to a fund at The Community Foundation
Your plan administrator must transfer the funds directly to a fund at The Community Foundation.
Your gift cannot be directed to a donor advised fund.
Distribution must be received on or before December 31, 2019 to be counted in the 2019 tax year.
Qualified Charitable Distributions are limited to $100,000 in total during each year.
All QCD gifts can be used to satisfy your IRA required minimum distribution.
Your QCD gift goes directly to The Community Foundation and is not subject to federal income tax.
Your plan administrator can process your gift by check or via a wire transfer. Click here to learn more.
The Community Foundation of the Rappahannock River Region does not provide legal or tax advice. We encourage you to discuss this transfer with your professional advisors.
Consider using the sample language below to advise your plan administrator of your gift.
Please contact us if you have any questions!
Emma Miller-Richards, Fund Development Associate
540 373-9292 or email@example.com
Teri McNally, Executive Director
540 373-9292 ext 120 or firstname.lastname@example.org
Sample Letter from Donor to IRA Administrator
Sample Request from Donor/IRA Plan Owner to Administrator for Charitable Distribution from Individual Retirement Account
RE: Request for Charitable Distribution from Individual Retirement Account
Dear Sir or Madam:
Please accept this letter as my request to make a direct charitable distribution from my Individual Retirement Account # ___________ (Account Number).
Please issue a check in the amount of $___________ payable to the organization specified below:
The Community Foundation of the Rappahannock River Region
PO Box 208
Fredericksburg, VA 22404
Tax ID # 54-1843987
Attn: Emma Miller-Richards, Fund Development Associate
In your transmittal to the foundation, please indicate my intention to direct this distribution to (select one):
Select Fund for Your Gift
The Community Foundation
Youth in Philanthropy
The Women and Girls Fund of The Community Foundation
The Community Fund of The Community Foundation
The ___________________________ Fund of The Community Foundation
Please also list my name and address as the donor of record in connection with this transfer; and please copy me on your transmittal letter.
If you have any questions or need to contact me, I can be reached at [donor phone number] or by email at [donor email address].
Thank you for your assistance in this matter.